Supermarkets charge into non food sectorThey now have more than 10 per cent of market

27 July 2007

Food shoppers need easy-to-interpret labels

Britain’s leading supermarkets are continuing to change the face of the high street by grabbing an even larger slice of the non food sector, a new report reveals.

For the first time ever more than £1 in every £10 spent on non-food products went into supermarket tills.

Retail analysts Verdict Research says it expects supermarkets’ non-food sales to increase by more than one third by 2011 – putting even more pressure on other retailers.

It says Tesco and Asda continue to lead the surge into non food sales but that Sainsbury’s and Morrison’s are also ‘set to ramp up their non-food space over the next five years.’

Customer service

Verdict points to Asda increasing its portfolio of Living stores, with the supermarket having a long-term aim of opening up to 300 outlets across the country, while it expects Tesco to drive its growth through its Tesco Direct home shopping service.

The report says these new larger stores will let the supermarket chains sell more non food products, including products such as furniture which were traditionally hampered by a lack of space.

However, Verdict says that while supermarkets can boast good prices and a convenient shopping experience, specialist retailers will have the edge when it comes to customer service.